We founded Fross & Fross Wealth Management with the shared vision of creating a truly world-class experience for our clients. In the years leading up to its founding, we shared careers in the financial services industry that were, perhaps not surprisingly, remarkably similar. Prior to starting our own firm, we both worked at Bankers Life and Casualty Company where we both held management positions. Our professional registrations include the Series 6, 7, 66, 65 and 63 registrations. We both hold Life, Health, and Variable Annuity licenses with the state of Florida and are registered in 25 other states collectively. We are also both Top Ten representatives with our broker dealer, SII Investments, Inc. We co-founded Platinum Advisor Strategies in 2009, which is a consulting company that helps over 1000 other financial advisors serve their clients well. As financial industry thought leaders, we regularly keynote industry conferences, and in addition to writing for Forbes have been featured in The New York Times, as well as on The Street.com and CNN Money, as well as numerous appearances in financial advisory trade journals like Financial Planning, Investment News, REP and more. As an independent financial planning firm, we represent our clients and their interests rather than any specific company. While some financial institutions recommend investment products that are manufactured by the parent of subsidiary business entities, we have no such ties. Our independence is vital to delivering objective, unbiased recommendations. Visit us at frossandfross.com.

Is It Best To Take Social Security Benefits At Age 62, Or Later?

The decision about when to start taking Social Security benefits is a big one that can wield an enormous impact on your retirement income. The decision is complex and depends on a lot of variables like your current and future financial situation, how long you expect to live, and what other sources of income you may have. Many retirees ask: “Should I take Social Security as soon as I’m eligible or wait until 66 or even 70?”

Thomas: Although there’s no one-size-fits-all answer to this question, I think many Americans would be served best by taking Social Security benefits as soon as they retire and letting their tax-deferred investments grow at potentially higher market rates. According to the SSA, more than two-thirds of eligible workers take early Social Security.

Robert: Retirees have three basic choices with respect to when they start taking Social Security benefits:

take Social Security at the earliest age of eligibility,

wait until actual retirement, or

wait until age 70.

Thomas: The choice that’s best for you depends on several factors that you should discuss with a financial advisor who can help you explore your options. A couple of factors you will want to consider are:

Your income needs: If you’re thinking about early retirement and have enough income from other sources, you can be more flexible about when to take Social Security benefits. However, if you can’t make ends meet without taking an early, reduced benefit, you may be better served by working until your normal retirement age. The SSA site can help you understand when you will qualify for full benefits.

Your life expectancy and break-even age: Taking Social Security early reduces your benefits, but it also means you’ll receive monthly checks for longer. Taking Social Security later results in fewer, but larger checks. The age at which these choices break even depends on factors like the amount of your benefit and basic assumptions about taxes and opportunity costs. A financial advisor can help you understand the impact of life expectancy and other factors on your benefit calculations.

Your spouse: You’ll also want to take your spouse’s age and health into account. If you are the higher earner, he or she might be eligible for survivor benefits based on your working life. A financial advisor can help you understand strategies to allow one spouse to claim another’s benefits, and other tactics to tackle this issue.

Solutions:

The most important thing to remember about Social Security timing is that there’s no approach that’s perfect for everyone. We work closely with our clients to evaluate many scenarios and assumptions, including life expectancy, tax considerations, and their financial circumstances, to help them make the best possible choice for their needs.

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